Initial Coin Offering – ICO

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  • An Initial Coin Offering is more commonly known as an ICO

 

  • It is an unregulated way for a company to raise money for a new cryptocurrency

 

  • An ICO is similar to that of an IPO (Initial Public Offering) and crowdfunding

 

  • In this way, an ICO avoids the usual methods of raising finance by the use of venture capitalists or banks that traditional IPOs follow

 

  • Prior to an ICO a company will usually release a white paper, showing what the company does, their future plans, how much money they need to raise etc.

 

  • An ICO is usually invested in by the use of fiat currency or digital currency

 

  • ICO tokens (to represent the asset) are then given to the buyer

 

  • There are hundreds of ICOs, with new ones entering the market everyday. It is important to do your research and look at the company white paper, website, reviews and the team behind the company before making any investment.

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